JLL Alternatives comments on impact of leasehold changes on retirement living sector

2017-07-25T05:00:00Z

​Commenting on government plans to ban leasehold on new builds, James Kingdom, Head of Research for JLL's Alternatives team, said: "The government's proposed changes to the use of leasehold for new build houses presents an opportunity for the retirement living sector. While details are still to be confirmed, it appears a ground rent can still be charged where there is the provision of shared services. Shared amenities and resident facilities are already an integral feature of housing with care (C2 use). This legislation could result in a greater choice for residents across other types of elderly accommodation.

"Much of the negative press that the retirement living sector has attracted in recent months is a direct result of leasehold tenures and a lack of understanding about them, particularly from a consumer perspective. Developers can start by granting longer leases to avoid these types of issue that impact on values. However, any measure that adds greater clarity is to be welcomed in a market where we know values track house price growth in the wider housing market in the majority of cases."